In this new volume it is argued that network effects are much more common than usually assumed, and that they have a profound impact on many aspects of ecomic systems, especially techlogical change and ecomic growth. The analysis and modelling of this interrelationship is the central focus of this book. While there exists a vast body of literature on ecomic growth, the theories put forward so far have had limited success in explaining observed patterns of ecomic growth. 'Growth cycles' in particular continue to elude standard ecomic models, though evolutionary ecomics has made some progress. Seeking to fill the gap, Torsten Heinrich's invative approach uses microecomics to explain heterogeneous sectoral dynamics on the meso level, and then aggregating these to observed macroecomic growth rates. In this way, it is shown that an evolutionary model of techlogical change with network effects can explain t only commonly observed asymmetric industry structures, mopolies and oligopolies but also 'growth cycles'. The book includes a comprehensive account of the most influential ecomic growth theories, a discussion of the research on network effects as well as an introduction to the methodology, the model, and a case study on the recent emergence of information and communication techlogy. This important new volume will be relevant to all those interested in theoretical ecomics, growth theory, invation ecomics, agent based modelling and industry dynamics.
Torsten Heinrich is Postdoctoral Lecturer and Research Assistant in the Faculty of Business Studies and Economics at the University of Bremen, Germany.
Taylor & Francis Ltd
Date of Publication
Economics: Professional & General
Place of Publication
Country of Publication
88 black & white illustrations, 13 black & white tables, 88 black & white line drawings